Contracts, Finance, and Transfer Practice Question
Question
A supervising broker is reviewing a transaction file for the Arizona Real Estate Salesperson Exam involving financing contingency and Arizona subdivision and disclosure practice. What should the licensee understand? (Item 27)
Answer choices
- A. The issue can be ignored if the parties want to close quickly.
- B. The rule applies only to commercial transactions and never to residential transactions.
- C. Understand buyer protection tied to loan approval or financing terms in a way that fits Arizona exam practice.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
C. Understand buyer protection tied to loan approval or financing terms in a way that fits Arizona exam practice.
Explanation
The correct answer is C because financing contingency requires candidates to understand buyer protection tied to loan approval or financing terms. The Arizona reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Contracts, Finance, and Transfer
- Objective: financing contingency